I co-signed a loan with my dad when I was 19 for his house...

[Ohiogal]

While I fully agree that every able bodied adult should participate in the labor market, Bankruptcy would be a better option than years of desperation to repay a bad decision made to serve abusive parents.

The OP is young, has a massive debt and few assets.

The loan itself is near-predatory terms.

I can't think of someone with a more sound reason to default and file.

She is a good Reformed Christian though.

 

[danimarie]

Yet as a Reformed Christian, you have no problem with walking away from your promises and showing that your word means nothing. As a Reformed Christian, you also have no problem with taking money without paying it back. Understood. Get on with your good Christian self.

Actually, I explained the bank will get their money back through selling the house and property. I'm currently paying as much as I can on a $10,000 (it grew to $12000 from deferment, but is now down to 9000) student loan as well. I do have a problem not paying my debts. My husband and I do everything we can to stay in good standing with our debts. But, I consider the bank getting that property and house as paying off the debt. And I already explained I'd get minimal if any money for working outside the home. I don't think taking a hand out from the government for child care is something God would smile at me for either.

 

[Antigone*]

Actually, I explained the bank will get their money back through selling the house and property. I'm currently paying as much as I can on a $10,000 (it grew to $12000 from deferment, but is now down to 9000) student loan as well. I do have a problem not paying my debts. My husband and I do everything we can to stay in good standing with our debts. But, I consider the bank getting that property and house as paying off the debt. And I already explained I'd get minimal if any money for working outside the home. I don't think taking a hand out from the government for child care is something God would smile at me for either.

Why does a SAHM need a student loan? Sounds like SAHM needs to get a job.

 

[Ohiogal]

Why does a SAHM need a student loan? Sounds like SAHM needs to get a job.

I already said that. The problem is SAHM is a good Reformed Christian who has three children she needs to homeschool because Satan or something lives in public schools.

 

[danimarie]

Why does a SAHM need a student loan? Sounds like SAHM needs to get a job.

Since when does an associate degree in generals (no - emphasis/extension of high school) award me a decent enough job to do anything? I consider going to college to be another bad decision I made. All I got out of it was debt. And I already explained, the bank gets the money off of selling the house and property that are worth far more than the amount of the loan... OK, done explaining myself.

 

[Ohiogal]

Since when does an associate degree in generals (no - emphasis/extension of high school) award me a decent enough job to do anything? I consider going to college to be another bad decision I made. All I got out of it was debt. And I already explained, the bank gets the money off of selling the house and property that are worth far more than the amount of the loan... OK, done explaining myself.

Hopefully, you are done making excuses for yourself. Because all of your excuses doesn't change the fact that you took a loan you had no plan on paying back and you are looking for a way out of paying it because it is more important to you.

 

[Antigone*]

Since when does an associate degree in generals (no - emphasis/extension of high school) award me a decent enough job to do anything? I consider going to college to be another bad decision I made. All I got out of it was debt. And I already explained, the bank gets the money off of selling the house and property that are worth far more than the amount of the loan... OK, done explaining myself.

http://www.huffingtonpost.com/2012/05/17/high-paying-jobs-college-degree_n_1525346.html

What's your next excuse

 

[danimarie]

While I fully agree that every able bodied adult should participate in the labor market, Bankruptcy would be a better option than years of desperation to repay a bad decision made to serve abusive parents.

The OP is young, has a massive debt and few assets.

The loan itself is near-predatory terms.

I can't think of someone with a more sound reason to default and file.

Thanks for the advice. I feel like I have a better understanding of things now thanks to the helpful comments from some of the posters in this thread. I know what I will do if worse comes to worse.

 

[LdiJ]

Hopefully, you are done making excuses for yourself. Because all of your excuses doesn't change the fact that you took a loan you had no plan on paying back and you are looking for a way out of paying it because it is more important to you.

I have to say this again...but I will put it in a different way. If my parents, at 19, had asked me to cosign something, that they promised to pay themselves, I never would have questioned it, I just would have signed. I probably would have done the same at 40 as well...but that is only because I would have known that barring some sort of serious disaster, they would have paid. I sure would have known better even at 25 what I was getting myself into than I would have known at 19.

OP, tell your husband to open his own bank account and keep his money there, and then decide how to proceed with this mess. You are right, if the property is really worth 100k, then even in a fire sale the bank is going to get their money back.

 

[Ohiogal]

I have to say this again...but I will put it in a different way. If my parents, at 19, had asked me to cosign something, that they promised to pay themselves, I never would have questioned it, I just would have signed. I probably would have done the same at 40 as well...but that is only because I would have known that barring some sort of serious disaster, they would have paid. I sure would have known better even at 25 what I was getting myself into than I would have known at 19.

OP, tell your husband to open his own bank account and keep his money there, and then decide how to proceed with this mess. You are right, if the property is really worth 100k, then even in a fire sale the bank is going to get their money back.

And if you had signed at 19, you would have been responsible for paying it back if your parents hadn't. The same as this OP. Though she is full of excuses as to why she shouldn't have to get a job to pay back HER debt. Granted she will most likely be able to file bankruptcy but the issue is she thinks she can get out of any legal repercussions (bad credit or anything) because she is a young reformed Christian with three children who doesn't want to work.

 

[danimarie]

And if you had signed at 19, you would have been responsible for paying it back if your parents hadn't. The same as this OP. Though she is full of excuses as to why she shouldn't have to get a job to pay back HER debt. Granted she will most likely be able to file bankruptcy but the issue is she thinks she can get out of any legal repercussions (bad credit or anything) because she is a young reformed Christian with three children who doesn't want to work.

I never said that I didn't expect bad credit as a result of the situation. I have no intention of filing for bankruptcy. In the worst case scenario I intend to allow that house to be foreclosed upon in order to fulfill the debt.

 

[Proserpina]

I never said that I didn't expect bad credit as a result of the situation. I have no intention of filing for bankruptcy. In the worst case scenario I intend to allow that house to be foreclosed upon in order to fulfill the debt.

Just understand that if the house is sold for less than the loan, y'all are on the hook for the remainder - that doesn't disappear.

(Have you looked at the real estate industry lately, btw? Dreadful!)

 

[ajkroy]

OP, you have already acknowledged that something may happen to your husband...yet, you seem to only worry about your credit score for renting another apartment? What would the four of you do if your husband was not around to pay the bills? If you won't work, at the very least look into a very large life insurance policy for him.

In addition, are you at all concerned about your retirement? You are 26 now. Even though your children are young, you should plan for how you support yourself for the next 60ish years. You will be missing a heck of a lot of 401k contributions.

 

[danimarie]

OP, you have already acknowledged that something may happen to your husband...yet, you seem to only worry about your credit score for renting another apartment? What would the four of you do if your husband was not around to pay the bills? If you won't work, at the very least look into a very large life insurance policy for him.

In addition, are you at all concerned about your retirement? You are 26 now. Even though your children are young, you should plan for how you support yourself for the next 60ish years. You will be missing a heck of a lot of 401k contributions.

Thanks for your concern. My husband has enough life insurance to cover me until I could find a job should anything happen. I don't necessarily have any faith in our government keeping on going for another 60 plus years unless some major changes are made. I could easily see a 401k ending up being worthless by then. Just being realistic.

Just understand that if the house is sold for less than the loan, y'all are on the hook for the remainder - that doesn't disappear.

(Have you looked at the real estate industry lately, btw? Dreadful!)

I am aware of the current real estate market. My husband recently sold our house that we had for 2 years. I would expect at least $50,000 (quick sale)for a house like my family has up for collateral. That would still cover the amount of the loan.

 

[FarmerJ]

OP have you called the county the home is in to learn what they say it is worth for taxation ? ( market value for purpose of taxes these days may not be too far off the mark of what a property can be sold for)